FBI and other federal agencies probe venture capital fund started by Peter Thiel
Federal investigators are reported to be looking into the conduct and practices at Mithril Capital, the venture capital firm co-founded by Peter Thiel.
Mithril denies the existence of any such investigation.
“Mithril Capital raised over $1 billion on the name of Thiel, one of Silicon Valley’s biggest celebrities,” writes Theodore Schleifer.
“Now federal investigators are looking under the hood.”
From the report at VOX/Recode:
US officials — including the FBI — have in recent months questioned some people close to Mithril regarding concerns of possible financial misconduct at the firm, according to people familiar with the matter who insisted on anonymity given its sensitivity. Mithril confirmed in a statement that its lawyers are in touch with government authorities.
Mithril’s leader, Ajay Royan, has worked with Thiel for almost two decades and has used that relationship to raise over $1 billion. But in recent years, Royan has frustrated some of his investors by sitting on some of their money rather than investing it in startups — while almost certainly raking in millions of dollars in fees for himself.
This federal probe is just the latest — but most significant — problem for the firm, which has increasingly struggled with internal tensions, declining morale, and employee departures. Not all federal investigations, of course, end with an indictment, and Mithril could eventually be cleared of wrongdoing.
Recode asked if Mithril and Ajay Royan are cooperating with the feds.
A Mithril spox told Recode:
“This is a foiled plot by a self-serving ex-employee. There are no allegations from any government agency, or any [investor.] Nevertheless, our attorneys are in contact with government authorities in order to protect [investors], employees, and portfolio companies against any extortionate behavior.”
Read the full story: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct
Responses from Twitter.
PHOTO: Peter Thiel, Shutterstock
Peter Thiel’s Palantir on Thursday said a Japanese insurance holding company, Sompo Holdings, has committed to invest $500 million in the Silicon Valley data analysis and surveillance technology firm that serves the U.S. government and the Central Intelligence Agency, among other clients worldwide.
Bloomberg News reports on Friday that the secretive big-data and surveillance technology firm Palantir is preparing to register an S-1 filing confidentially, and plans to go public in the coming weeks and start trading as early as fall 2020.
On November 13, noted vampire capitalist Peter Thiel gave a speech to donors at the Manhattan Institute for Policy Research conservative think-tank on “The End of the Computer Age.” Over the course of 40 minutes, he covered a lot of topics—some of which were at least provocative, some of them which sounded like they were […]
There was already enough concern about the healthy state of our drinking water before COVID-19. And while there’s no evidence that the coronavirus has ever been detected in the water supply, the general sense of fear surrounding any type of contamination is obviously at a fever pitch everywhere. Contaminants like lead, chromium, arsenic, copper, mercury, […]
Allergies are brutal, affecting about 30 percent of all American adults. While many only saddle sufferers with mild irritations like coughing, sneezing, a runny nose or watering eyes, some symptoms can be even more intrusive and significantly more painful. Sinus pressure is one of those unholy side effects, causing a pain that can stretch from […]
“I probably use my chef’s knives more than any other tool in the kitchen.” – Bobby Flay, celebrity chef Cooking at home has taken on a whole new life in the wake of COVID-19, and even with restaurants slowly reopening across the US, there’s heavy reason to suspect that more of us preparing more meals […]